Sports Facility Financing and Development Trends in Europe and Germany 2003 Michael Siebold
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Marquette Sports Law Review Volume 15 Article 9 Issue 1 Fall Sports Facility Financing and Development Trends in Europe and Germany 2003 Michael Siebold Angela Klingmüller Follow this and additional works at: http://scholarship.law.marquette.edu/sportslaw Part of the Entertainment and Sports Law Commons Repository Citation Michael Siebold and Angela Klingmüller, Sports Facility Financing and Development Trends in Europe and Germany 2003, 15 Marq. Sports L. Rev. 75 (2004) Available at: http://scholarship.law.marquette.edu/sportslaw/vol15/iss1/9 This Symposium is brought to you for free and open access by the Journals at Marquette Law Scholarly Commons. For more information, please contact [email protected]. SPORTS FACILITY FINANCING AND DEVELOPMENT TRENDS IN EUROPE AND GERMANY 2003 MICHAEL SIEBOLD* & ANGELA KLINGMULLER ** "Touring Europe is not popular with my people, because you are always having to work in 200-year-old venues." This statement was made by a respected United States (U.S.) concert promoter, who prefers to remain anonymous, at a conference in the United States. To a certain extent, it might be true that some of the European venues have an antiquated charm. However, the overall perception is certainly wrong. Europe has made great progress in recent years developing arenas and stadia that offer the highest standards for players, performers, and visitors. Before that time, design concentrated on capacity rather than on comfort and safety, and often stadia were updated only when a country was awarded a major sporting event, such as the soccer World Cup, or a major athletics tournament, such as the Olympic Games. The change occurred in the 1980s and early 1990s: design moved on top of the agenda when the soccer World Cup held in Italy in 1990 delivered stunning visual creations of stadia. Coupled with stadia tragedies, the United Kingdom (U.K.), in particular, demanded safer stadia and produced a climate in which stadia, arenas, and major concert venues came into the public spotlight. Founding partner of Arnecke Siebold law firm, is a German native with considerable international experience. .. LL.M., studied at the Universities of Bayreuth, LMU Munich, Cape Town, Duke University School of Law (LL.M. 1993), Doctor of Laws University of MOnster. She is a partner of the law firm of Arnecke Siebold where she specializes in sports and entertainment law, real property law, commercial leasing, sponsoring law, aviation law and environmental law. MARQUETTE SPORTS LA W REVIEW [Vol. 15:1 I. FACTORS WITH AN IMPACT ON DEVELOPMENTS IN THE STADIA AND ARENA BUSINESS A. Catastrophes/TragicIncidents Tragic incidents or catastrophes have the fastest impact on the way stadia/arenas are being built today. In the 1980s, the European venues had acquired a rather negative reputation. This was due to a number of tragic incidents and catastrophes with regard to spectator access and constructional failures - most of them in the context of soccer events. One of the most traumatic events happened during the European Cup game of Juventus Turin ("Juve") versus FC Liverpool in the Belgian Heysel Stadium in Brussels in May 1985. The so-called dream final turned into a horror scenario after ticket sales got out of control, neutral blocks between the British and Italian fans were missing, and Liverpool fans started to rampage in order to provoke the fans of Juve. Excitement turned into panic, and the situation escalated. People tried to flee, but were stopped by walls and fences that ultimately gave way to the crowds putting pressure on them. Thirty-nine people were killed; hundreds of people were injured and needed treatment. Another catastrophe, known as the "Tragedy of Hillsborough," happened in 1989 in Sheffield, United Kingdom. After a gate of a grandstand collapsed during the British semi-final between, again, Liverpool and Nottingham Forrest, 96 spectators were killed; 200 were severely injured. Medical treatment was insufficient, and the police realized too late that the fans were crowded towards the field in an area where a fence threatened to be crashed by the 4000 Liverpool late-arrivers. The inside doors to the stadium were opened too late. As a consequence, some major changes occurred in the way stadia are being built. Today you will find all-seater stadia, as well as the ban of alcoholic beverages during game time in most sports in most venues; ticket sales are being managed differently, and fans are being treated and observed. B. FIFAIUEFA Stadia Requirements In order to be selected as a host, the Federation Internationale de Football Association (FIFA) and Union of European Football Associations (UEFA) have strict minimum standards the venue must fulfill. With regard to the soccer World Cup 2006, FIFA requires, for example, that the stadia have a capacity of at least 40,000 seats for first-round and quarter-final matches and at least 60,000 seats for the opening match, semi-finals, the third-place playoff, and finals. The venues must be "all-seater" only; the seats should all 2004] FACILITY TRENDS IN EUROPE AND GERMANY be covered, and the stadia must have video surveillance. Furthermore, the stadium operators must guarantee "advertising-free" venues for the duration of the World Cup. The cities and stadia must be decorated according to FIFA special requirements. All promotional measures and activities will be coordinated by FIFA and the local organizing committee. The World Cup 2006 in Germany shall also take into account the environment, which means that when building or reconstructing stadia, environmental-friendly material and techniques shall be used. C. Changed Customer Changes in the development of stadia and arenas also occur because of a changed "customer." Of course there are still the "die-hard" fans who will come to see even a losing team. However, there is also a "new" crowd for whom going to the game is just another form of entertainment. For them, sports events are "social events," and the new venues are a place to be. Sports are now competing with all other forms of entertainment like theme parks, touring shows, museums, zoos, etc. The new consumer is more sophisticated and wants more out of the venue than simply the soccer game. The ambience, ddcor, restaurants, availability of parking, etc. have become increasingly important, and it is often on the basis of these "soft factors" that they make a decision. Today's customer has choices; therefore, the sports venues have to be - and are - prepared to compete with other forms of entertainment. It. "HOT" DEVELOPMENT TRENDS IN GERMANY AND EUROPE A. Multipurpose Nowadays the trend is moving toward stadia that will be host to sport events and also to concerts, etc., and most of them seem to be integrated into a whole entertainment complex with hotels, shopping centers, and the like. The same is true with regard to arenas. In Germany, by now almost all, single-usage arenas have been turned into multipurpose arenas. Ko1n Arena was the role model in Germany; the most recent example is the new Color Line Arena in Hamburg. B. Luxury Suites and Business Seats Luxury suites are not a new phenomenon in Germany or Europe; however, in the beginning there was little functionality with the luxury suites themselves MARQUETTE SPORTS LA W REVIEW [Vol. 15:1 and only few business reasons for them to exist. This has changed dramatically, in particular, over the past few years. Today the inclusion of private suites is an essential component to any revenue plan in a stadium or arena. C. Safety Concerns September 1 th, as the most intense example of terrorism in the Western world ever, had a major impact worldwide. Safety and security measures were increased tremendously for a number of weeks. However, the effect faded before long, and only some rather minor features of increased security remained. Also one has to admit that whilst airports and public buildings received enormous attention and the most safety and security measures in the aftermath of September 11 th, the protection of the so-called "soft targets" like stadia, arenas, and conference and convention centers had little to no additional measures to introduce. The reason was that most of them were already applying quite a strict and high standard of security. As an example of how sports venues dealt with the impact of the September 11 th crisis, the German Soccer Federation (DFB) introduced a new evacuation measure program and informed its participating clubs, as well as the leagues and stadia, on it. In preparation of the 2006 World Cup, the World Cup organization committee is working on the security and safety plan. Several electronic devices are being discussed, and new machines are being introduced to scan people and the equipment they bring into the venue. III. EXAMPLES OF STADIA AND ARENAS IN EUROPE A. Netherlands Although Italy set the trend in particular with regard to design developments when hosting the World Cup in 1990 and has wonderful stadia, the milestone with regard to the multipurpose development in Europe was set in the Netherlands with the Amsterdam Arena, which opened in August 1996. It was the first stadium in Europe to feature a sliding retractable roof, and the first stadium in the world with a road running beneath it. It has since been the home of the Amsterdamsche Football Club's (AFC) Ajax and the Amsterdam Admirals team in National Football League (NFL) Europe. It provides seating capacity for more than 52,000 spectators. Amsterdam Arena is a multi-functional venue that can be used for a variety of events, such as music concerts, presentations, theatre performances, ice skating galas, celebrations, etc. 2004] FACILITY TRENDS IN EUROPEAND GERMANY B. France As organizer of the 1998 Soccer World Cup, France and Paris needed a world-class stadium.